Business Segments

12 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Business Segments

15.     Business Segments

The Animal Health segment manufactures and markets products for the poultry, swine, cattle, dairy, aquaculture and ethanol markets. The business includes net sales of medicated feed additives and other related products, nutritional specialty products and vaccines. The Mineral Nutrition segment manufactures and markets trace minerals for the cattle, swine, poultry and pet food markets. The Performance Products segment manufactures and markets a variety of products for use in the personal care, automotive, industrial chemical and chemical catalyst industries.

We evaluate performance and allocate resources based on the Animal Health, Mineral Nutrition and Performance Products segments. Certain of our costs and assets are not directly attributable to these segments. We do not allocate such items to the principal segments because they are not used to evaluate their operating results or financial position. Corporate costs include the departmental operating costs of the Board of Directors, the Chairman, President and Chief Executive Officer, the Chief Operating Officer, the Chief Financial Officer, the Senior Vice President and General Counsel, the Senior Vice President of Human Resources, the Chief Information Officer and the Executive Vice President of Corporate Strategy. Costs include the executives and their staffs and include compensation and benefits, outside services, professional fees and office space. Assets include cash and cash equivalents, debt issue costs, all income tax related assets and certain other assets.

We evaluate performance of our segments based on Adjusted EBITDA. We define Adjusted EBITDA as income before income taxes plus (a) interest expense, net, (b) depreciation and amortization, (c) (income) loss from, and disposal of, discontinued operations, (d) other expense or less other income, as separately reported on our consolidated statements of operations, including foreign currency gains and losses and loss on extinguishment of debt, and (e) certain items that we consider to be unusual, non-operational or non-recurring.

The accounting policies of our segments are the same as those described in the summary of significant accounting policies included herein.

For the Years Ended June 30	2016			2015			2014
Net sales
MFAs and other		$	339,916		$	335,735		$	326,568
Nutritional Specialties			94,084			81,702			63,068
Vaccines			52,140			53,363			41,417
Animal Health			486,140			470,800			431,053
Mineral Nutrition			216,685			227,102			201,599
Performance Products			48,701			50,689			59,262
Total segments		$	751,526		$	748,591		$	691,914
Depreciation and amortization
Animal Health		$	17,149		$	15,430		$	15,484
Mineral Nutrition			2,467			2,468			2,368
Performance Products			807			577			412
Total segments		$	20,423		$	18,475		$	18,264
Adjusted EBITDA
Animal Health		$	127,442		$	120,259		$	100,280
Mineral Nutrition			14,971			14,429			11,636
Performance Products			970			2,646			4,626
Total segments		$	143,383		$	137,334		$	116,542
Reconciliation of income before income taxes to Adjusted EBITDA
Income before income taxes		$	76,761		$	78,763		$	6,308
Interest expense, net			16,592			14,305			32,962
Depreciation and amortization – Total segments			20,423			18,475			18,264
Depreciation and amortization – Corporate			3,029			3,129			3,189
Corporate costs			29,323			27,315			25,945
Acquisition-related cost of goods sold			2,566			—			—
Acquisition-related accrued compensation			1,680			747			—
Acquisition-related transaction costs			618			—			—
Loss on insurance claim			—			—			5,350
Foreign currency (gains) losses, net			(7,609)			(5,400)			1,753
Loss on extinguishment of debt			—			—			22,771
Adjusted EBITDA – Total segments		$	143,383		$	137,334		$	116,542

As of June 30	2016			2015
Identifiable assets
Animal Health		$	444,751		$	349,345
Mineral Nutrition			57,939			58,722
Performance Products			21,557			21,888
Total segments			524,247			429,955
Corporate			86,126			63,363
Total		$	610,373		$	493,318

The Animal Health segment includes all goodwill. The Animal Health segment includes advances to and investment in equity method investee of  $4,076 and $4,364 as of June 30, 2016 and 2015, respectively. The Performance Products segment includes an investment in equity method investee of $504 and $361 as of June 30, 2016 and 2015, respectively.